Honda, LG Energy Solutions To Build $4.4 Bln JV Battery Plant In Ohio

(RTTNews) - Japanese auto giant Honda and South Korean company LG Energy Solution announced that they will build their new joint venture battery plant in Fayette County, Ohio.

The two companies will commit to investing $3.5 billion and create 2,200 jobs, pending final government approvals. The companies' overall investment related to the JV is projected to reach $4.4 billion.

The joint venture between Honda and LG Energy Solution will be formally established in 2022, pending regulatory approvals. The two companies plan to begin construction in early 2023 and complete the new production facility by the end of 2024.

The plant aims to have approximately 40GWh of annual production capacity as it starts mass production of pouch-type lithium-ion batteries by the end of 2025.

Honda already has announced plans to begin production and sales of Honda EVs in North America in 2026, based on its new Honda e:Architecture. The EV batteries produced at the new JV plant will be provided to Honda auto plants to produce EVs to be sold in North America.

"In another major step toward electrification, LG Energy Solution's innovative battery technologies will not only power Honda's brand-new EV models but support Ohio's green economy. We extend our gratitude to everyone who played a role in making this happen," said Dong-Myung Kim, Executive Vice President of Advanced Automotive Battery Division at LG Energy Solution. "With our commitment to building the world-best quality products, together with Honda, we look forward to not only creating thousands of quality jobs here in Ohio, but growing together with the community."